Workforce Planning

Understanding Workforce Planning

  • Workforce planning is a continual process used by organisations to align the needs and priorities of the organisation with those of its workforce.
  • It involves identifying current and future workforce requirements in terms of quantity, quality, and location of staff.
  • Helps organisations to anticipate change and to manage the human resource implications of organisational strategies.
  • Its objective is to ensure that businesses have the right staff at the right time who can effectively carry out their assigned roles.

Phases of Workforce Planning

Strategic Planning Phase

  • This phase involves assessing current staff, future needs and the external labour market situation.
  • It involves strategic management decisions about the direction of the organisation, how it will achieve its objectives, and how changes in its external environment will impact its plans.

Operational Planning Phase

  • Develops detailed action plans about how the organisation will acquire, develop and retain the workforce it needs.
  • Involves recruitment, selection, training and performance management.

Monitoring and Revision Phase

  • Changes in external or internal conditions could require a change in workforce plans.
  • Effective workforce plans are regularly reviewed, monitored, and adjusted as necessary.

Benefits of Workforce Planning

  • Ensures organisations have sufficient staff to meet their operational requirements.
  • Helps to identify the gap between the existing workforce and future needs.
  • Enables strategic resourcing, staff development and retention strategies.
  • Reduces the risks associated with having too few or too many staff.

Challenges in Workforce Planning

  • Inherent uncertainty about future organisational requirements and external labour market conditions.
  • The need to integrate with strategic and other functional plans.
  • Requires the involvement and commitment of managers across the organisation.
  • Effective workforce planning requires HRM expertise in assessing workforce metrics, identifying workforce trends, undertaking scenario planning and developing effective workforce strategies.